With reference to the royal decree demanding that the state shall pay the value-added tax (VAT) on private health services on behalf of citizens, the concerned parties wish to clarify that the state will pay the value-added tax (5%) on health services provided to citizens by the private sector.
This tax paid by the state covers tax due on cash payments for all taxable health services or extra payments made by insured citizens including the health insurance excess. Beyond that, the insurance companies shall pay the value-added tax on all covered health services within the ratio stipulated by the insurance company. Accordingly, citizens shall not pay any tax. The implementation mechanism of the auspicious royal decree, in term of how to reimburse such sums to the private health facilities, will be announced soon.